House panel wants U.S-China telecom mergers blocked

Source: Wash. post

The federal government should block mergers of U.S. firms with Chinese telecommunications companies suspected of ties to the Chinese government to lower the potential risk that such firms could serve as conduits for espionage, a congressional panel concluded.

The recommendation is one of several growing out of a nearly year-long investigation by the House Permanent Select Committee on Intelligence, which is set to issue its report Monday. The report accuses two major Chinese telecoms, Huawei and ZTE, of failing to cooperate fully with the panel’s probe into their operations and alleged ties to the Chinese government and military.

“Huawei and ZTE have failed to assuage the committee’s significant security concerns presented by their continued expansion into the United States,” the report said. “In fact, given their obstructionist behavior, the committee believes addressing these concerns have become an imperative for the country.”

The United States has become more vocal about the growing problem of economic cyber espionage, particularly by China. The U.S. intelligence community has publicly accused China of engaging in widespread cyber theft of corporate secrets. A report last fall by the Office of the Director of National Intelligence singled out “Chinese actors” as “the world’s most active and persistent perpetrators of economic espionage.”

6. Once the required 'bribe' amount is reached, all opposition will fold.

We were the leaders of the world 30 years ago, in communications technology, but the 'rich' decided they could get slave labor to do the manufacturing, allowing them to extract much more in profits. They could care less about American security!

7. Why haven't any of the articles mentioned the Bain connection to Huawei?

Bain partnered with Huawei a few years ago. Google it. Would Romney really be tough on China if his money and friends' business interests are tied up in Chinese investments? What was Bain doing trying to help give this shadowy company more of a foothold in the US.